Topic > Zotefoams Strategy Financial Report - 1790

Zotefoams strategy refers to expansion through new customers for the MuCell extrusion technology licensing business, partnerships or acquisitions in related technologies, products or markets, and a combination of profitable organic growth of Polyolefin Foams and HPP businesses. There are four key objectives of Zotefoams that explain the fundamental elements of the strategy. • Growth – Increase sales in the polyolefins business. Polyolefin foam sales growth grew 8% at constant currency and exceeded double the average GDP growth rate. The company wants to increase sales by more than double GDP growth by supporting customers in innovating new applications and products. • Development: Develop an HPP portfolio and MEL customer base to deliver higher margins. HPP sales increased 51% to 3.60 million. Companies see the potential for increased margins and high profits in the HPP portfolio, so they tend to invest further in markets, products and technologies arising from these high-growth opportunities. • Improve: improve the return on invested capital. The pre-tax return on capital employed (ROCE) rose to 20.8% in 2012. ROCE is a suitable benchmark because there may be a lower ROCE result each year and long-term shareholders expect a return relative to their risk.• Profit – Increase your operating margins. The group's operating margins grew to 12.8% of sales. Margins from polyolefin foams and the HPP business increased while MEL's increased investment was a loss. Therefore, they want to achieve operating margins. However, they intend to maintain the same four key business objectives, although planned high levels of capital expenditure will impact return on invested capital. Furthermore, they extend the Croyd site......middle of paper......high liabilities arising from the increase in interest-bearing loans and borrowings in 2012. It may be difficult to control and manage this debt” Question 3 : Which are the company's plans to meet these liabilities and why did the company decide to use this plan? potential of the company in the future” Question 4: Do you have any plan to maintain this performance improvement in the future? “Business plan to maintain the same four key objectives of the business (Growth, Development, Improvement and Profit), although the high levels of expenditure planned capital expenditure will have an impact on the return on invested capital. Question 5: Why did the company decide to maintain these four key objectives, even if it will impact the return on invested capital?